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Answer to Accounting Test Question SWO No.1: |
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Answer to Question A: (A ii) Computation of Adjusted Value of Wintner’s stock at 31 March 2006
Answer A (ii)
From the above computation, the decrease in stock will affect the stock valuation by $500 which is ($3,000-$2,500)
Answer to Question B Summer Computation of Stock Loss :
The total insurance claim is $50,300+$4,600 = $54,900
Working details for Cost of Sales: Since Selling price is 1331/3% Therefore Cost of sales = 100/1331/3 x $252,800 =$189,600 Or alternative working: Mark-up =331/3% =1/3 Margin =1/4 Margin = Gross Profit/Sales =1/4 =Gross Profit/252,800 Gross profit = $63,200 Cost of sales = Sales – Gross Profit =$252,800-$63,200 = $ 189,600
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